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Chinese telecoms equipment providers are suffering because of fears that their kit contains backdoors for the Chinese government to listen in

Huawei is currently bidding to provide mobile network equipment in southern India. In fact, after a court case ruled out a bid from Nokia-Siemens, it is the only firm still in the running. But the Indian media has reported that granting the contract to the Chinese firm would be a security risk.

Huawei, which was founded by an ex-People's Liberation Army officer, has faced similar concerns in the UK and Australia.

The firm's Indian sales boss told the FT that this was no more than negative spin from rival companies. Vikas Dewan said: "As we are getting big enough to trouble our biggest competitors, there are allegations emerging similar to those we faced in the US."

Huawei has attracted such concerns partly because of its founder and partly because its precise ownership is not known - although the Chinese government is assumed to have an interest.

Huawei's attempt to take over 3Com was scuppered for similar reasons. ®